42710 Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations 

1Public Law 113–23, 127 Stat. 493 (2013). 

2Removing Profile Drawing Requirement for 

Qualifying Conduit Notices of Intent and Revising 

Filing Requirements for Major Hydroelectric 

Projects 10 MW or Less, 86 FR 13506 (Mar. 9, 2021), 

174 FERC ¶ 61,105 (2021). 

3See Revisions and Technical Corrections to 

Conform the Commission’s Regulations to the 

Hydropower Regulatory Efficiency Act of 2013, 

Order No. 800, 79 FR 59105 (Oct. 1, 2014), 148 

FERC ¶ 61,197 (2014). 

Elkin, NC, KZEF, NDB–A, Orig, CANCELLED 

Kindred, ND, K74, RNAV (GPS) RWY 11, 

Amdt 1E 

Kindred, ND, K74, RNAV (GPS) RWY 29, 

Amdt 1E 

Watford City, ND, Watford City Muni, 

Takeoff Minimums and Obstacle DP, Amdt 

2 

Burwell, NE, KBUB, RNAV (GPS) RWY 33, 

Orig-B 

Lincoln, NE, KLNK, ILS Y OR LOC Y RWY 

18, Amdt 7C 

Lincoln, NE, KLNK, ILS Y OR LOC Y RWY 

36, Amdt 11K 

Lincoln, NE, KLNK, VOR Y RWY 18, Amdt 

13B 

Dayton, OH, KDAY, ILS OR LOC RWY 24R, 

Amdt 10B 

Hamilton, OH, KHAO, ILS OR LOC RWY 29, 

Amdt 2A 

Waverly, OH, KEOP, RNAV (GPS) RWY 7, 

Amdt 1B 

Waverly, OH, KEOP, RNAV (GPS) RWY 25, 

Amdt 1B 

Corvallis, OR, KCVO, RNAV (GPS) RWY 17, 

Amdt 1B 

Corvallis, OR, KCVO, RNAV (GPS) RWY 35, 

Amdt 3A 

La Grande, OR, KLGD, NDB–B, Amdt 2 

La Grande, OR, La Grande/Union County, 

Takeoff Minimums and Obstacle DP, Amdt 

4 

Conway, SC, KHYW, NDB RWY 4, Orig-D 

Huron, SD, Huron Rgnl, Takeoff Minimums 

and Obstacle DP, Amdt 5A 

Clarksville, TN, KCKV, RNAV (GPS) RWY 

17, Amdt 1B 

Dyersburg, TN, Dyersburg Rgnl, Takeoff 

Minimums and Obstacle DP, Amdt 1A 

Dyersburg, TN, KDYR, VOR–A, Amdt 18B, 

CANCELLED 

Memphis, TN, KMEM, RNAV (GPS) Z RWY 

18C, Amdt 2C 

Memphis, TN, KMEM, RNAV (GPS) Z RWY 

18L, Amdt 2E 

Memphis, TN, KMEM, RNAV (GPS) Z RWY 

18R, Amdt 2G 

Comanche, TX, KMKN, RNAV (GPS) RWY 

35, Orig-B 

Houston, TX, KHOU, RNAV (GPS) RWY 17, 

Amdt 1B, CANCELLED 

Houston, TX, KHOU, RNAV (GPS) RWY 35, 

Amdt 1C, CANCELLED 

Houston, TX, William P Hobby, Takeoff 

Minimums and Obstacle DP, Amdt 7A 

Midland, TX, KMAF, RADAR 1, Amdt 7A, 

CANCELLED 

Van Horn, TX, KVHN, RNAV (GPS) RWY 21, 

Orig-B 

Martinsville, VA, KMTV, RNAV (GPS) RWY 

13, Amdt 2A 

Highgate, VT, KFSO, RNAV (GPS) RWY 19, 

Amdt 2 

Land O’ Lakes, WI, Kings Land O’ Lakes, 

Takeoff Minimums and Obstacle DP, Amdt 

5 

Wheeling, WV, KHLG, ILS OR LOC RWY 3, 

Amdt 23A 

[FR Doc. 2021–16584 Filed 8–4–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 4 and 5 

[Docket No. RM20–21–000; Order No. 877] 

Removing Profile Drawing 

Requirement for Qualifying Conduit 

Notices of Intent and Revising Filing 

Requirements for Major Hydroelectric 

Projects 10 MW or Less 

AGENCY: Federal Energy Regulatory 

Commission, Department of Energy. 

ACTION: Final rule. 

SUMMARY: In this final rule, the Federal 

Energy Regulatory Commission 

(Commission) is amending its 

regulations governing the filing 

requirements for qualifying conduits 

and certain major hydroelectric power 

projects. Specifically, the Commission is 

removing the requirement that a notice 

of intent to construct a qualifying 

conduit include a profile drawing 

showing the source of the hydroelectric 

potential in instances where a dam 

would be constructed in association 

with the facility and extending the 

licensing requirements that currently 

apply to major projects up to 5 

megawatts (MW) to major projects 10 

MW or less, consistent with the 

amended definition of a small 

hydroelectric power project in the 

Hydropower Regulatory Efficiency Act 

of 2013. 

DATES: This rule is effective October 4, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Heather Campbell (Technical 

Information), Office of Energy Projects, 

Federal Energy Regulatory Commission, 

888 First Street NE, Washington, DC 

20426, (202) 502–6182, 

heather.e.campbell@ferc.gov. 

Kelly Houff (Technical Information), 

Office of Energy Projects, Federal 

Energy Regulatory Commission, 888 

First Street NE, Washington, DC 20426, 

(202) 502–6393, kelly.houff@ferc.gov. 

John Matkowski (Technical 

Information), Office of Energy Projects, 

Federal Energy Regulatory Commission, 

888 First Street NE, Washington, DC 

20426, (202) 502–8576, 

john.matkowski@ferc.gov. 

Rachael Warden (Legal Information), 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street NE, Washington, DC 20426, 

(202) 502–8717, rachael.warden@

ferc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

1. By this final rule, the Federal 

Energy Regulatory Commission 

(Commission or FERC) is amending 

parts 4 and 5 of its regulations 

governing the filing requirements for 

qualifying conduits and certain major 

hydroelectric power projects. The 

Commission, under Part I of the Federal 

Power Act (FPA), licenses hydropower 

projects that are developed by nonFederal entities including individuals, 

private entities, states, municipalities, 

electric cooperatives, and others. 

2. The Hydropower Regulatory 

Efficiency Act of 2013 (2013 HREA) 1

was signed into law on August 9, 2013. 

As explained below, changes 

implemented in response to the 2013 

HREA form the basis for these revisions 

to the Commission’s regulations. 

II. Notice of Proposed Rulemaking 

3. On February 18, 2021, the 

Commission issued a notice of proposed 

rulemaking (NOPR) proposing to: (1) 

Remove the requirement that a notice of 

intent to construct a qualifying conduit 

include a profile drawing showing the 

source of the hydroelectric potential in 

instances where a dam would be 

constructed in association with the 

facility; and (2) extend the licensing 

requirements that currently apply to 

major projects up to 5 megawatts (MW) 

to major projects 10 MW or less, 

consistent with the amended definition 

of a small hydroelectric power project in 

the 2013 HREA.2 The Commission did 

not receive any comments in response 

to the NOPR. The proposal set forth in 

the NOPR and the Commission’s 

determination are discussed below. 

III. Discussion 

A. Qualifying Conduits 

4. The NOPR explained that the 2013 

HREA amended section 30 of the FPA 

to create a subset of small conduit 

facilities that are categorically excluded 

from the licensing and exemption 

requirements of the FPA. In 2014, the 

Commission issued Order No. 800, 

which became effective February 23, 

2015, defining a ‘‘qualifying conduit 

hydropower facility’’ at § 4.30(b)(26) of 

its regulations.3 Subsequently, section 

30 of the FPA was amended by the 


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4Public Law 115–270, 132 Stat. 3765 (2018). 

5 16 U.S.C. 823a(a)(2)(A). 

6 Id. 823a(a)(3)(C). The qualifying conduit 

hydropower facility must also meet the 

requirements for a small conduit facility as defined 

in section 30(a)(3)(A) of the FPA. Id. 823a(a)(3)(A). 

7The 2013 HREA required that qualifying conduit 

hydropower facilities not exceed 5 MW. This limit 

was revised to 40 MW at section 3002(2) in the 

America’s Water Infrastructure Act of 2018 

(codified at 16 U.S.C. 823a(a)(3)(C)(ii)). 

8Public Law 115–270, 132 Stat. 3765. 

9 18 CFR 4.401. 

10 Id. § 4.401(f). 

11 151 FERC ¶ 61,228 (2015). 

12 Id. P 13. 

13 16 U.S.C. 2705. 

14Regulations Governing Applications for License 

for Major Unconstructed Projects and Major 

Modified Projects; Applications for License for 

Transmission Line Only and Applications for 

Amendment to License, Order No. 184, 46 FR 55926 

(Nov. 13, 1981), FERC Stats. & Regs. ¶ 30,308 (1981) 

(cross-referenced at 17 FERC ¶ 61,122); Regulations 

Governing Applications for License for Minor Water 

Power Projects and Major Water Power Projects 5 

Megawatts or Less, Order No. 185, 46 FR 55944 

(Nov. 13, 1981), FERC Stats. & Regs. ¶ 30,309 (1981) 

(cross-referenced at 17 FERC ¶ 61,121). 

15The Commission has maintained a distinction 

between major and minor projects based on section 

10(i) of the FPA. However, the license application 

procedures set forth in § 4.61 of the Commission’s 

regulations apply to both minor projects and major 

projects less than 5 MW (with the exception of 

Exhibit E for unconstructed projects). These 

revisions do not affect minor projects. 

16See Revisions and Technical Corrections to 

Conform the Commission’s Regulations to the 

Hydropower Regulatory Efficiency Act of 2013, 

Order No. 800, 148 FERC ¶ 61,197 (2014). 

17Applications for License for Minor Water Power 

Projects and Major Water Power Projects 5 

Megawatts or Less, 46 FR 9637 (Jan. 29, 1981), FERC 

Stats. & Regs. ¶ 32,106 (1981) (cross-referenced at 14 

FERC ¶ 61,042). 

America’s Water Infrastructure Act of 

2018.4

5. In accordance with section 

30(a)(2)(A),5 any person, State, or 

municipality proposing to construct a 

‘‘qualifying conduit hydropower 

facility’’ must file a notice of intent 

demonstrating the facility meets the 

following ‘‘qualifying criteria’’: 6

• Be located on and use only the 

hydroelectric potential of a nonfederally owned conduit; 

• have a proposed installed capacity 

that does not exceed 40 MW; 7 and 

• be proposed for construction and, 

as of the date of enactment of the 2013 

HREA, not be licensed under, or 

exempted from, the licensing 

requirements of Part I of the FPA. 

6. Under the 2013 HREA, as 

amended,8 the Commission is required 

to determine whether proposed projects 

meet the criteria to be considered 

qualifying conduit hydropower 

facilities. Qualifying conduit 

hydropower facilities are not required to 

be licensed or exempted by the 

Commission; however, the entity 

proposing to construct a facility that 

meets the criteria must file a Notice of 

Intent to Construct a Qualifying Conduit 

Hydropower Facility (NOI) with the 

Commission that demonstrates the 

facility meets the qualifying criteria 

discussed above. 

7. The NOI must contain: An 

introductory statement; a statement that 

the proposed project will use the 

hydroelectric potential of a nonfederally owned conduit; a statement 

that the proposed facility has not been 

licensed or exempted on or before 

August 9, 2013; a description of the 

facility proposal; project drawings; the 

preliminary permit project number of 

the proposed facility, if applicable; and 

verification in a sworn notarized 

statement or an unsworn statement.9

Specifically with respect to the project 

drawings, the NOI must include a plan 

(or overhead view); a location map 

showing the facilities and their 

relationship to the nearest town; and if 

a dam would be constructed in 

association with the facility, a profile 

drawing showing that the conduit, and 

not the dam, creates the hydroelectric 

potential.10

8. On June 18, 2015, in Soldier 

Canyon Filter Plant,11 the Commission 

stated: 

In determining whether a proposed 

qualifying conduit hydropower facility 

meets the requirement of FPA section 

30(a) that it use ‘‘only the hydroelectric 

potential of a non-federally owned 

conduit’’ and (if it meets the other 

section 30(a) requirements) is thus 

excluded from the licensing 

requirements of the FPA, we see no 

reason to apply a different, more 

stringent standard than was established 

in 1980 for small conduit facility 

exemptions. We view small conduit 

facilities and qualifying conduits as 

simply generating hydroelectricity by 

using the water within a conduit 

operated for the distribution of water for 

agricultural, municipal, or industrial 

consumption and not primarily for the 

generation of electricity. Whether, or in 

what proportion, the conduit’s ability to 

generate hydropower is due to the 

conduit’s gradient or the head from an 

upstream dam is not relevant.12

This holding indicates that the profile 

drawings are no longer relevant and 

should not be required as part of the 

NOI submittal. Consequently, the 

Commission proposed to amend its 

regulations to remove this requirement. 

B. Major Projects Greater Than 5 MW 

and up to and Including 10 MW 

9. Section 405 of the Public Utility 

Regulatory Policies Act of 1978 

(PURPA) 13 provided that certain 

hydropower projects that produce 5,000 

kilowatts, or 5 MW, or less of power 

were exempted from the licensing 

requirements of Part 1 of the FPA. 

10. In 1981, the Commission adopted 

the 5–MW demarcation for certain major 

hydroelectric projects required to be 

licensed under Part 1 of the FPA to 

parallel PURPA’s 5–MW demarcation 

regarding exemptions.14 Part 4 of the 

Commission’s regulations includes three 

relevant licensing subparts: (1) Subpart 

E—Application for License for Major 

Unconstructed Project and Major 

Modified Project (see 18 CFR 4.40); (2) 

Subpart F—Application for License for 

Major Project—Existing Dam (see 18 

CFR 4.50); and (3) Subpart G— 

Application for License for Minor Water 

Power Projects and Major Water Power 

Projects 5 MW or Less (see 18 CFR 4.60; 

4.61).15 Subparts E and F apply to 

projects greater than 5 MW, and include 

additional filing requirements beyond 

subpart G, which applies to projects less 

than or equal to 5 MW. 

11. Likewise, part 4 of Commission’s 

regulations include two subparts that 

rely on the same 5–MW limit to 

determine minimum filing requirements 

for an application for license solely for 

transmission lines that transmit power 

from a licensed water power projects as 

well amendments to licensed water 

power projects: (1) Subpart H— 

Application for License for 

Transmission Line Only (see 18 CFR 

4.71); and (2) Subpart L—Application 

for Amendment of License (see 18 CFR 

4.201), respectively. 

12. Part 5 of the Commission’s 

regulations rely on the 5–MW limit to 

determine minimum filing requirements 

for applications for license for water 

power projects filed and processed 

using the integrated licensing process 

(see 18 CFR 5.18). 

13. The 2013 HREA amended section 

405 to increase the limit for exemptions 

to 10,000 kilowatts, or 10 MW, with the 

goal of facilitating the speed at which 

such hydropower projects could be 

built. Order 800 amended the 

Commission’s regulations to reflect the 

10–MW limit.16

14. As a result of these changes, the 

Commission’s limit for license 

application provisions no longer 

parallels the limit for exemptions. We 

stated in the NOPR that we continue to 

believe that a parallel demarcation is 

appropriate to ‘‘expedite hydropower 

development by easing the burden of 

preparing an application for license and 

by assisting the Commission in more 

rapid processing of applications.’’ 17


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18Section 4.32(a)(5)(ii), which contains a crossreference to § 4.61, will also be revised. 

19 44 U.S.C. 3501–3521. 

20See 5 CFR 1320.12. 

21FERC–500 includes the reporting and 

recordkeeping requirements for ‘‘Application for 

License/Relicense for Water Projects with More 

than 5 Megawatt (MW) Capacity.’’ 

22FERC–505 includes the reporting and 

recordkeeping requirements for ‘‘Small Hydropower 

Projects and Conduit Facilities including License/ 

Relicense, Exemption, and Qualifying Conduit 

Facility Determination.’’ 

23We consider the filing of an application or 

notice of intent to be a ‘‘response.’’ 

24Commission staff estimates that the industry’s 

skill set and cost (for wages and benefits) for FERC– 

500 and FERC–505 are approximately the same as 

the Commission’s average cost. The FERC 2020 

average salary plus benefits for one FERC full-time 

equivalent (FTE) is $172,329/year (or $83.00/hour). 

Moreover, the 5–MW limit in the 

Commission’s regulations could be 

burdensome to projects greater than 5 

MW and up to and including 10 MW, 

in terms of the cost and time associated 

with the additional filing requirements 

of subparts E and F. 

15. Therefore, the Commission 

proposed to amend parts 4 and 5 of its 

regulations to extend the licensing and 

amendment filing requirements that 

currently apply to major projects up to 

5 MW to major projects 10 MW or less, 

consistent with the amended definition 

of a small hydroelectric power project in 

the 2013 HREA.18

C. Commission Determination 

16. For the reasons discussed above, 

the Commission adopts the NOPR’s 

proposal to: (1) Remove the requirement 

that an NOI include a profile drawing 

showing the source of the hydroelectric 

potential in instances where a dam 

would be constructed in association 

with the facility; and (2) extend the 

licensing requirements that currently 

apply to major projects up to 5 MW to 

major projects 10 MW or less. 

IV. Regulatory Requirements 

A. Information Collection Statement 

17. The Paperwork Reduction Act 19

requires each Federal agency to seek 

and obtain the Office of Management 

and Budget’s (OMB) approval before 

undertaking a collection of information 

directed to 10 or more persons or 

contained in a rule of general 

applicability. OMB regulations require 

approval of certain information 

collection requirements contained in 

final rules published in the Federal 

Register.20 Upon approval of a 

collection of information, OMB will 

assign an OMB control number and an 

expiration date. Respondents subject to 

the filing requirements of a rule will not 

be penalized for failing to respond to the 

collection of information unless the 

collection of information displays a 

valid OMB control number. 

18. Public Reporting Burden: By 

revising regulations governing the filing 

requirements for qualifying conduits 

and for major hydroelectric power 

projects greater than 5 MW and up to 

and including 10 MW, this final rule 

will modify certain reporting and 

recordkeeping requirements included in 

FERC–500 (OMB Control No 1902– 

0058) 21 and FERC–505 (OMB Control 

No. 1902–0115).22

19. These revisions to the 

Commission’s regulations will align the 

filing requirements for qualifying 

conduits with Commission precedent 

and align the filing requirements for 

major projects greater than 5 MW and 

up to and including 10 MW to be 

consistent with the amended definition 

of a small hydroelectric power project in 

the 2013 HREA. Both revisions 

represent a slight decrease in the 

reporting requirements and burden 

information for FERC–500 and FERC– 

505. 

20. The estimated burden and cost for 

the requirements affected by this final 

rule follow. 

CHANGES DUE TO THE FINAL RULE IN DOCKET NO. RM20–21–000 

Numbers of 

respondents 

Numbers of 

responses 23

per 

respondent 

Total number 

of responses 

Avg. burden hrs. & 

cost per 

response 24

Total annual burden 

hours & total annual 

cost 

(1) (2) (1) × (2) = (3) (4) (3) × (4) = 5 

FERC–500 ........................................................... 3 1 3 320 hours/$26,560 

reduction.

960 hours/$79,680 

reduction. 

FERC–505 ........................................................... 8 1 8 10 hours/$830 reduction.80 hours/$6,640 reduction. 

Total ............................................................. ........................ ........................ 11 ................................ 1,040 hours/ 

$86,320 reduction. 

21. Titles: FERC–500 (Application for 

License/Relicense for Water Projects 

with More than 5 Megawatt (MW) 

Capacity) and FERC–505 (Small 

Hydropower Projects and Conduit 

Facilities including License/Relicense, 

Exemption, and Qualifying Conduit 

Facility Determination). 

22. Action: Revisions to information 

collections FERC–500 and FERC–505. 

23. OMB Control Nos.: 1902–0058 

(FERC–500) and 1902–0115 (FERC– 

505). 

24. Respondents: Municipalities, 

businesses, private citizens, and forprofit and not-for-profit institutions. 

25. Frequency of Information: 

Ongoing. 

26. Necessity of Information: The 

revised regulations remove the 

Commission’s requirement for notices of 

intent to construct a qualifying conduit 

to include a profile drawing, consistent 

with Commission precedent, and align 

the Commission’s filing requirements 

for major projects greater than 5 MW 

and up to and including 10 MW to be 

consistent with the amended definition 

of a small hydroelectric power project in 

the 2013 HREA. The revised regulations 

affect only the number of entities that 

would file applications with the 

Commission for these two project types 

and reduce information collection 

requirements. 

27. Internal Review: The Commission 

has reviewed the revisions and has 

determined that they are necessary. 

These requirements conform to the 

Commission’s need for efficient 

information collection, communication, 

and management within the energy 

industry. The Commission has assured 


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Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations 42713 

25Regulations Implementing the National 

Environmental Policy Act of 1969, Order No. 486, 

52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. 

¶ 30,783 (1987) (cross-referenced at 41 FERC 

¶ 61,284). 

26 18 CFR 380.4(a)(2)(ii). 

27 5 U.S.C. 601–612. 

28 Id. 603(c). 

29 Id. 605(b). 

30 13 CFR 121.101. 

31 Id. § 121.201. 

32The North American Industry Classification 

System (NAICS) is an industry classification system 

that Federal statistical agencies use to categorize 

businesses for the purpose of collecting, analyzing, 

and publishing statistical data related to the U.S. 

economy. United States Census Bureau, North 

American Industry Classification System, https://

www.census.gov/eos/www/naics/. 

33 13 CFR 121.201 (Sector 22—Utilities). 

itself, by means of internal review, that 

there is specific, objective support for 

the burden estimates associated with the 

information collection requirements. 

28. Interested persons may obtain 

information on the reporting 

requirements by contacting the Federal 

Energy Regulatory Commission at one of 

the following methods: 

• USPS at: Federal Energy Regulatory 

Commission, Ellen Brown, Office of the 

Executive Director, 888 First Street NE, 

Washington, DC 20426. 

• Hard copy communication other 

than USPS: Federal Energy Regulatory 

Commission, Ellen Brown, Office of the 

Executive Director, 12225 Wilkins 

Avenue, Rockville, Maryland 20852. 

• email to: DataClearance@ferc.gov. 

• phone: (202) 502–8663, or by fax: 

(202) 273–0873. 

29. Please send comments concerning 

the collection of information and the 

associated burden estimates to: Office of 

Information and Regulatory Affairs, 

Office of Management and Budget 

[Attention: Federal Energy Regulatory 

Commission Desk Officer]. Due to 

security concerns, comments should be 

sent directly to www.reginfo.gov/public/ 

do/PRAMain. Comments submitted to 

OMB should be sent within 30 days of 

publication of this notification in the 

Federal Register and should refer to 

FERC–500 (OMB Control No 1902– 

0058) and FERC–505 (OMB Control No. 

1902–0115). 

B. Environmental Analysis 

30. The Commission is required to 

prepare an Environmental Assessment 

or an Environmental Impact statement 

for any action that may have a 

significant effect on the human 

environment.25 Excluded from this 

requirement are rules that are clarifying, 

corrective, or procedural, or that do not 

substantially change the effect of 

legislation or the regulations being 

amended.26 This final rule revises the 

filing requirements for qualifying 

conduit projects and the filing 

requirements for license applications for 

major hydroelectric projects with an 

installed capacity of 10 MW or less. 

Because this final rule is procedural and 

does not substantially change the effect 

of the regulations being amended, 

preparation of an Environmental 

Assessment or Environmental Impact 

Statement is not required. 

C. Regulatory Flexibility Act 

31. The Regulatory Flexibility Act of 

1980 (RFA) 27 generally requires a 

description and analysis of final rules 

that will have significant economic 

impact on a substantial number of small 

entities. The RFA mandates 

consideration of regulatory alternatives 

that accomplish the stated objectives of 

a rulemaking and minimize any 

significant economic impact on a 

substantial number of small entities.28

In lieu of preparing a regulatory 

flexibility analysis, an agency may 

certify that a final rule will not have a 

significant economic impact on a 

substantial number of small entities.29

32. The Small Business 

Administration’s (SBA) Office of Size 

Standards develops the numerical 

definition of a small business.30 The 

SBA size standard for electric utilities is 

based on the number of employees, 

including affiliates.31 Under SBA’s 

current size standards, a hydroelectric 

power generator (NAICS code 221111) 32

is small if, including its affiliates, it 

employs 500 or fewer people.33 The 

Commission, however, currently does 

not require information regarding the 

number of individuals employed by 

hydroelectric generators to administer 

Part 1 of the Federal Power Act and 

therefore is unable to estimate the 

number of small entities under the SBA 

definition. Regardless, the Commission 

anticipates that this final rule will affect 

few entities. 

33. As noted earlier, the final rule will 

only affect entities filing notices of 

intent to construct a qualifying conduit 

in instances where a dam would be 

constructed in association with the 

facility and entities filing licensing or 

amendment applications for major 

hydroelectric projects with an installed 

capacity of greater than 5 MW and up 

to and including 10 MW. From 2013 to 

2020, the Commission received 

approximately 140 total notices to 

construct qualifying conduits and 18 

applicable licensing applications. The 

revisions will eliminate the filing 

requirement for profile drawings and 

reduce the filing requirements for major 

hydroelectric projects with an installed 

capacity greater than 5 MW and up to 

and including 10 MW, thus reducing the 

burden on small hydro developers going 

forward. 

34. Accordingly, pursuant to section 

605(b) of the RFA, the Commission 

certifies that this final rule would not 

have a significant economic impact on 

a substantial number of small entities. 

D. Document Availability 

35. In addition to publishing the full 

text of this document in the Federal 

Register, the Commission provides all 

interested persons an opportunity to 

view and/or print the contents of this 

document via the internet through the 

Commission’s Home Page (http://

www.ferc.gov). At this time, the 

Commission has suspended access to 

the Commission’s Public Reference 

Room due to the March 13, 2020 

proclamation declaring a National 

Emergency concerning the Novel 

Coronavirus Disease (COVID–19). 

36. From the Commission’s Home 

Page on the internet, this information is 

available on eLibrary. The full text of 

this document is available on eLibrary 

in PDF and Microsoft Word format for 

viewing, printing, and/or downloading. 

To access this document in eLibrary, 

type the docket number excluding the 

last three digits of this document in the 

docket number field. 

37. User assistance is available for 

eLibrary and the Commission’s website 

during normal business hours from the 

Commission’s Online Support at (202) 

502–6652 (toll free at 1–866–208–3676) 

or email at ferconlinesupport@ferc.gov, 

or the Public Reference Room at (202) 

502–8371, TTY (202) 502–8659. Email 

the Public Reference Room at 

public.referenceroom@ferc.gov. 

E. Effective Date and Congressional 

Notification 

38. These regulations are effective 

October 4, 2021. The Commission has 

determined, with the concurrence of the 

Administrator of the Office of 

Information and Regulatory Affairs of 

OMB, that this rule is not a ‘‘major rule’’ 

as defined in section 351 of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. This rule is being 

submitted to the Senate, House, 

Government Accountability Office, and 

Small Business Administration. 

List of Subjects in 18 CFR Parts 4 and 

5 

Administrative practice and 

procedure, Electric power, Reporting 

and recordkeeping requirements. 

By direction of the Commission. 


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42714 Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations 

Issued: July 15, 2021. 

Debbie-Anne A. Reese, 

Deputy Secretary. 

In consideration of the foregoing, the 

Commission amends parts 4 and 5, 

chapter I, title 18, Code of Federal 

Regulations, as follows: 

PART 4—LICENSES, PERMITS, 

EXEMPTIONS, AND DETERMINATION 

OF PROJECT COSTS 

■ 1. The authority citation for part 4 

continues to read as follows: 

Authority: 16 U.S.C. 791a–825r; 42 U.S.C. 

7101–7352. 

■ 2. In § 4.32, revise paragraph (a)(5)(ii) 

to read as follows: 

§ 4.32 Acceptance for filing or rejection; 

information to be made available to the 

public; requests for additional studies. 

(a) * * * 

(5) * * * 

(ii) License for a minor water power 

project and a major water power project 

10 MW or less: § 4.61; 

* * * * * 

■ 3. In § 4.40, revise paragraph (a) to 

read as follows: 

§ 4.40 Applicability. 

(a) Applicability. The provisions of 

this subpart apply to any application for 

an initial license for a major 

unconstructed project that would have a 

total installed capacity of more than 10 

megawatts, and any application for an 

initial or new license for a major 

modified project with a total installed 

capacity more than 10 megawatts. An 

applicant for license for any major 

unconstructed or major modified water 

power project that would have a total 

installed generating capacity of 10 

megawatts or less must submit 

application under subpart G of this part 

(§§ 4.60 and 4.61). 

* * * * * 

■ 4. In § 4.50, revise paragraphs (a)(1) 

and (3) to read as follows: 

§ 4.50 Applicability. 

(a) * * * 

(1) Except as provided in paragraph 

(a)(2) of this section, the provisions of 

this subpart apply to any application for 

either an initial license or new license 

for a major project—existing dam that is 

proposed to have a total installed 

capacity of more than 10 megawatts. 

* * * * * 

(3) An applicant for license for any 

major project—existing dam that would 

have a total installed capacity of 10 

megawatts or less must submit 

application under subpart G of this part 

(§§ 4.60 and 4.61). 

* * * * * 

■ 5. Revise the heading to subpart G to 

read as follows: 

Subpart G—Application for License for 

Minor Water Power Projects and Major 

Water Power Projects 10 Megawatts or 

Less 

■ 6. In § 4.60, revise paragraphs (a)(2) 

and (3) and (b) to read as follows: 

§ 4.60 Applicability and notice to agencies. 

(a) * * * 

(2) Any major project—existing dam, 

as defined in § 4.30(b)(16), that has a 

total installed capacity of 10 MW or 

less; or 

(3) Any major unconstructed project 

or major modified project, as defined in 

§ 4.30(b)(15) and (14) respectively, that 

has a total installed capacity of 10 MW 

or less. 

(b) Notice to agencies. The 

Commission will supply interested 

Federal, state, and local agencies with 

notice of any application for license for 

a water power project 10 MW or less 

and request comment on the 

application. Copies of the application 

will be available for inspection at the 

Commission’s Public Reference Room. 

The applicant shall also furnish copies 

of the filed application to any Federal, 

state, or local agency that so requests. 

* * * * * 

■ 7. In § 4.61, revise paragraphs (a)(3), 

(b) introductory text, (d)(1) introductory 

text, and (d)(2) introductory text to read 

as follows: 

§ 4.61 Contents of application. 

(a) * * * 

(3) Each application for a license for 

a water power project 10 megawatts or 

less must include the information 

requested in the initial statement and 

lettered exhibits described by 

paragraphs (b) through (f) of this 

section, and must be provided in the 

form specified. The Commission 

reserves the right to require additional 

information, or another filing procedure, 

if data provided indicate such action to 

be appropriate. 

(b) * * * 

Before the Federal Energy Regulatory 

Commission 

Application for License for a [Minor 

Water Power Project, or Major Water 

Power Project, 10 Megawatts or Less, as 

Appropriate] 

* * * * * 

(d) * * * 

(1) For major unconstructed and 

major modified projects 10 MW or less. 

Any application must contain an 

Exhibit E conforming with the data and 

consultation requirements of § 4.41(f), if 

the application is for license for a water 

power project which has or is proposed 

to have a total installed generating 

capacity greater than 1.5 MW but not 

greater than 10 MW, and which: 

* * * * * 

(2) For minor projects and major 

projects at existing dams 10 MW or less. 

An application for license for either a 

minor water power project with a total 

proposed installed generating capacity 

of 1.5 MW or less or a major project— 

existing dam with a proposed total 

installed capacity of 10 MW or less must 

contain an Exhibit E under this 

paragraph (d)(2). See § 4.38 for 

consultation requirements. The 

Environmental Report must contain the 

following information: 

* * * * * 

■ 8. In § 4.71, revise paragraphs (b)(1) 

and (2) to read as follows: 

§ 4.71 Contents of application. 

* * * * * 

(b) * * * 

(1) For any transmission line that, at 

the time the application is filed, is not 

constructed and is proposed to be 

connected to a licensed water power 

project with an installed generating 

capacity of more than 10 MW—Exhibits 

A, B, C, D, E, F, and G under § 4.41; 

(2) For any transmission line that, at 

the time the application is filed, is not 

constructed and is proposed to be 

connected to a licensed water power 

project with an installed generating 

capacity of 10 MW or less—Exhibits E, 

F, and G under § 4.61; and 

* * * * * 

■ 9. In § 4.201, revise paragraphs (b)(1) 

and (3) through (5) to read as follows: 

§ 4.201 Contents of application. 

* * * * * 

(b) * * * 

(1) For amendment of a license for a 

water power project that, at the time the 

application is filed, is not constructed 

and is proposed to have a total installed 

generating capacity of more than 10 

MW—Exhibits A, B, C, D, E, F, and G 

under § 4.41; 

* * * * * 

(3) For amendment of a license for a 

water power project that, at the time the 

application is filed, is not constructed 

and is proposed to have a total installed 

generating capacity of 10 MW or less, 

but more than 1.5 MW—Exhibits F and 

G under § 4.61, and Exhibit E under 

§ 4.41; 

(4) For amendment of a license for a 

water power project that, at the time the 


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Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Rules and Regulations 42715 

application for amendment is filed, has 

been constructed, and is proposed to 

have a total installed generating 

capacity of 10 MW or less—Exhibit E, F, 

and G under § 4.61; and 

(5) For amendment of a license for a 

water power project that, at the time the 

application is filed, has been 

constructed and is proposed to have a 

total installed generating capacity of 

more than 10 MW—Exhibits A, B, C, D, 

E, F, and G under § 4.51. 

* * * * * 

§ 4.401 [Amended] 

■ 10. In § 4.401, remove paragraph (f)(3). 

PART 5—INTEGRATED LICENSE 

APPLICATION PROCESS 

■ 11. The authority citation for part 5 

continues to read as follows: 

Authority: 16 U.S.C. 792–828c, 2601–2645; 

42 U.S.C. 7101–7352. 

■ 12. In § 5.18, revise paragraph (a)(5)(i) 

to read as follows: 

§ 5.18 Application content. 

(a) * * * 

(5) * * * 

(i) License for a minor water power 

project and a major water power project 

10 MW or less: § 4.61 of this chapter 

(General instructions, initial statement, 

and Exhibits A, F, and G); 

* * * * * 

[FR Doc. 2021–15511 Filed 8–4–21; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9889] 

RIN 1545–BO4 

Investing in Qualified Opportunity 

Funds; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations; correction. 

SUMMARY: This document contains 

corrections to Treasury Decision 9889, 

which was published in the Federal 

Register on Monday, January 13, 2020. 

Treasury Decision 9889 contained final 

regulations under the Internal Revenue 

Code (Code) that govern the extent to 

which taxpayers may elect the Federal 

income tax benefits with respect to 

certain equity interests in a qualified 

opportunity fund (QOF). 

DATES: These corrections are effective 

on August 5, 2021 and applicable on or 

after January 13, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Concerning section 1400Z–2 and these 

regulations generally, Harith J. Razaa, 

(202) 317–7006, or Kyle C. Griffin, (202) 

317–4718, of the Office of Associate 

Chief Counsel (Income Tax and 

Accounting). These numbers are not 

toll-free numbers. 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9889) that 

are the subject of this correction are 

under section 1400Z–2 of the Code. 

Need for Correction 

As published on January 13, 2020 (85 

FR 1866) the final regulations (TD 9889) 

contain errors that need to be corrected. 

Correction of Publication 

Accordingly, the final regulations (TD 

9889) that are the subject of FR Doc. 

2019–27846, appearing on page 1866 in 

the Federal Register of January 13, 

2020, are corrected as follows: 

1. On page 1897, second and third 

columns, removing the fourth through 

the sixth sentences of the last paragraph. 

2. On page 1923, first column, the first 

full paragraph is corrected to read: ‘‘As 

set forth in the final regulations, the 62- 

month working capital safe harbor 

provides that, during the maximum 62- 

month covered period, (1) NQFP in 

excess of the five-percent NQFP 

limitation will not cause a trade or 

business to fail to qualify as a qualified 

opportunity zone business, and (2) gross 

income earned from the trade or 

business will be counted towards 

satisfying the 50-percent gross income 

requirement (each of clauses (1) and (2) 

function in a manner similar to the 31- 

month working capital safe harbor). In 

addition, the regulations provide 

additional flexibility for entities 

utilizing the working capital safe harbor. 

First, for start-up entities, the 62-month 

working capital safe harbor provides 

that, during the maximum 62-month 

covered period, if property of an entity 

that would otherwise be NQFP is treated 

as being a reasonable amount of working 

capital under the safe harbor, the entity 

satisfies the requirements of section 

1400Z–2(d)(3)(A)(i) only during the 

working capital safe harbor period(s) 

with regard to such property. However, 

the final regulations make clear that 

such property is not and will never be 

qualified opportunity zone business 

property for any purpose. Second, for 

any eligible entity utilizing the working 

capital safe harbor, if tangible property 

is expected to be qualified opportunity 

zone business property pursuant to the 

written plan, such tangible property is 

treated as qualified opportunity zone 

business during the working capital safe 

harbor test for purposes of section 

1400Z–2(d)(3). Under the 62-month 

working capital safe harbor, intangible 

property purchased or licensed with 

working capital covered by the safe 

harbor, and pursuant to the plan 

submitted with respect to that safe 

harbor, will count towards the 

satisfaction of the 40-percent intangible 

property use test.’’ 

3. On page 1926, third column, the 

second sentence of the first full 

paragraph, the language ‘‘In general, the 

final regulations permit a qualified 

opportunity zone business to treat 

tangible property for which working 

capital covered by the 31-month 

working capital safe harbor is expended 

as (i) used in the trade or business of the 

qualified opportunity zone business, 

and (ii) qualified opportunity zone 

business property throughout the period 

during which such working capital is 

covered by the safe harbor.’’ is corrected 

to read ‘‘In general, the 62-month 

working capital safe harbor under the 

final regulations provides that, during 

the maximum 62-month covered period, 

if property of a start-up entity that 

would otherwise be NQFP is treated as 

being a reasonable amount of working 

capital under the safe harbor, the startup entity satisfies the requirements of 

section 1400Z–2(d)(3)(A)(i) only during 

the working capital safe harbor period(s) 

with regard to such property. However, 

the final regulations make clear that 

such property is not qualified 

opportunity zone business property for 

any other purpose. See part V.N.3.c of 

this Summary of Comments and 

Explanation of Revisions describing the 

62-month working capital safe harbor 

set forth in § 1.1400Z2(d)–1(d)(3)(vi).’’. 

4. On page 1926, third column, the 

first through the sixth line from the 

bottom of the first full paragraph, the 

language ‘‘capital covered by the 31- 

month working capital safe harbor are 

not, following the conclusion of the 

final safe harbor period, treated as 

tangible property for purposes of 

applying the 70-percent tangible 

property standard.’’ is corrected to read 

‘‘capital covered by the 62-month 

working capital safe harbor are not, 

following the conclusion of the final 

safe harbor period, treated as qualified 

opportunity zone business property for 

purposes of applying the 70-percent 

tangible property standard. Because 

working capital is not tangible property, 

working capital covered by the 62- 

month safe harbor cannot be treated as 

qualified opportunity zone business 


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